Verge Price Analysis: XVG Down 94% From ATH — Strong Support Expected at $0.01 But Can the Bulls Keep the Market Above?

Verge has seen a 2.49% price drop over the past 24 hours of trading. The cryptocurrency is currently trading at a price of $0.0126 per token after suffering a precipitous price drop of 32% in the last 7 trading days alone.

Verge is a privacy-focused cryptocurrency that was rebranded from its original name, DogeCoinDark, in 2016. It is a cryptocurrency that competes with the likes of Bitcoin by offering faster transaction speeds and lower fees in comparison.

The Verge team has increased the security of their blockchain by implementing 5 different mining algorithms in order to reduce the risk of a 51% attack on the network. Verge also integrates TOR and i2p in its network which is designed to hide the IP addresses of the users on the network.

The main privacy feature delivered by Verge is known as the Wraith Protocol. This feature allows users to select between the public and private ledger when conducting transactions. With the Wraith Protocol active, the transactions are hidden on the blockchain and are therefore not able to be forensically examined.

For more information on Verge, we recommend reading our “What is Verge” guide.

Verge is currently ranked 41st in terms of overall market cap across the entire industry. It has a total market cap value of $191 million, after the 47-month old coins suffered a steep 94% price drop from its all-time high price.

Let us continue to analyze price action for Verge coin over the long term.

Verge Price Analysis

XVG/USD – LONG TERM – DAILY CHART

Analyzing price action from the long-term perspective above, we can see that the market had experienced an incredible bullish run towards the end of 2017 when price action started from a low of $0.00617 on December 7, 2017 and extended to an all-time high (ATH) price of $0.2969 on December 23, 2017. This was an epic price increase totaling over 4,000% from low to high.

We can see that after placing the ATH, price action rolled over and began to decline rapidly. It had originally found support at the .786 Fibonacci Retracement level priced at $0.0661 in January 2018. This Fibonacci Retracement is measured from the entire bullish run mentioned above.

Price action continued to decline through February until significant support was found at the .886 Fibonacci Retracement level priced at $0.0368. This price level held throughout the majority of the year until it was penetrated during June 2018.

The market has continued its price decline since June 2018 to where it is currently trading around the $0.0126 handle. Price action is still yet to complete a 100% Fibonacci Retracement of December 2017’s bullish run.

Let us continue to analyze price action a little closer over the short term to highlight any potential support and resistance areas.

XVG/USD – SHORT TERM – DAILY CHART

Analyzing price action from the advantage of a short-term perspective, we can see that the market had hit an area of significant support identified by the short-term downside 1.414 Fibonacci Extension level (drawn in blue) priced at $0.0101. We can see that as the market reached this area, price action rebounded and began to ascend.

It is also important to highlight that this area of support is bolstered further by a longer-term downside 1.618 Fibonacci Extension level (drawn in green) priced at the same price level. This combination of support is expected to be proven as significant support moving forward.

We can also see that for the majority of the past trading month, price action has been trapped within a range-bound condition between the short-term downside 1.272 and 1.414 Fibonacci Extension levels (both drawn in blue), priced at $0.01845 and $0.0101 respectively.

If the bearish action continues within the market, we expect immediate support to be located at the lower boundary of our trading range priced at $0.0101. If price action does indeed penetrate below this level, then we expect the market to continue further lower until hitting support at the $0.00617 handle to complete a 100% FIbonacci Retracement level of the December 2017 epic bull run.

Alternatively, if the bulls can regather momentum at this price level, we expect immediate significant resistance to be located at the upper boundary of the trading range priced at $0.01845. If the bulls can push price action above the trading range we expect further resistance to be located at the previous downside 1.414 Fibonacci Extension level (drawn in green) priced at $0.02367.

This area of resistance will require significant momentum to overcome due to the 100-day moving average hovering within this area, bolstering the expected resistance here.

If the bulls can push the market above the 100-day moving average, then further resistance will then be expected at the long-term .886 Fibonacci Retracement level priced at $0.03684.

The technical indicators within the market are currently heavily favoring the bears at this current moment in time. The RSI is trading far below the 50 handle, indicating that the bearish momentum is predominantly in control.

If we would like the bulls to regain some losses within this market, we would need to see the RSI make its way back above the 50 handle.

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About Yaz Sheikh

Yaz is a cryptocurrency technical analyst with over 6 years of technical trading experience. As an Economics graduate he has taken a keen interest on the future potentials of blockchain in the financial industry. Removing crypto from the equation, Yaz loves to watch his favourite football team and keep up-to-date with the latest fights within the UFC.

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